Chaparral Energy terminates ‘Merger Pact’ with Edge Petroleum

Chaparral Energy terminates ‘Merger Pact’ with Edge PetroleumChaparral Energy, an independent oil and natural gas production and exploitation company has announced the execution of a ‘Merger Termination Agreement’ between Chaparral Energy, Inc., and its subsidiary Chaparral Exploration, L.L.C., and Edge Petroleum Corporation.

The termination agreement provides option for both parties to terminate the previously announced merger agreement dated July 14, 2008.

It may noted that Chaparral and Edge entered into the merger termination pact following both parties' conclusion that there was no reasonable expectation that all of the closing conditions set forth in the merger agreement would be met on or prior to December 31, 2008, the date on which either party could terminate the merger agreement unilaterally.

Apart from this, Chaparral Energy also executed a termination and settlement agreement with Magnetar Financial LLC on behalf of itself and its affiliates to terminate their previously announced stock purchase agreement dated July 14, 2008.

In conjunction with the termination of the stock agreement with Magnetar, Magnetar will pay Chaparral a $5.0 million termination payment, of which $1.5 million will be paid to Edge for reimbursement of certain expenses.

Chaparral Energy, Inc. is an independent oil and natural gas production and exploitation company, headquartered in Oklahoma City. The company's primary producing assets are in the Mid-Continent and the Permian Basin.

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